Is it odd?

[gymes_0]

I received a message from ebay saying I have to upgrade to a business account. But I don't have any messages about my nin number. If I past the market for a business account then wouldn't I pass the market for taxes to?

I don't have business account on ebsy but I do submit taxes. 

[game_raid]

It is nothing to do with tax, they want you be compliant with UK consumer law.

An eBay seller must register as a business if, for example, they sell items they have bought to resell, they make items in order to sell them, or if they buy items for their business.

What is the policy?

Business sellers can't represent themselves as private individuals and are required to: 

• Register their business on eBay - opens in new window or tab
• Provide the following information in the business seller information section in their listings:
  • Full contact details for the business 
  • Any trade organisations they belong to
  • Any authorisation scheme relevant to the online business
  • Clear information about price, including any shipping or delivery charges and tax
  • A VAT number, if the business's online activities are subject to VAT
• Make sure the listings are not misleading and provide clear and accurate information
• Create a returns policy including the time period in which buyers can return items and get a full refund
• Follow all government requirements and regulations including:
  • Informing buyers they have 14 days to withdraw from the transaction for items that fall under the Consumer Contracts Regulations
  • Accept the return of faulty items within 30 days with a full refund for items that fall under the Consumer Rights Act 2015

Additionally, business sellers can't:

• Charge restocking fees
• Keep original shipping fees for returns
• Charge buyers return shipping fees

[papso22]

If you were selling prior to 1st Jan 2024 then ebay will ask for your NINO sometime this year.

The upgrade request is because you must look like a business seller to ebay, which if you pay taxes on the sales,  you are.  Tax paying sellers most definitely need an ebay business account.

[gymes_0]

Sometimes this year? I thought everything went to HMRC in january?

[papso22]

It does for sellers who started selling in 2024.  As you have used a brand new account to ask your question we can't see when you started selling.

[vintique*violet]

@papso22 Tax paying sellers most definitely need an ebay business account.

Really? Where does it state this ?

I do not believe that all tax-paying sellers require an eBay Business account... particularly if they are only selling their personal items as a private seller.

Tax-payers can notify HMRC if they think that it would take them over their income tax bracket, and/or disclose any extra income.   Selling personal items does not make a " tax payer " definitely need an eBay Business account. 

[papso22]

If you pay taxes on your ebay sales you need to be selling those items on an ebay business account.

Clearly if you only pay tax on employment income, for example, then selling your own unwanted personal possessions on ebay does not require an ebay business account. 

I took the information in the opening post and assumed the poster meant they paid tax on their ebay sales, if that was wrong, I apologise to them.

[vintique*violet]

@papso22 

You could possibly pay tax on eBay sales if it takes you over your personal tax threshold... whether self-employed, or PAYE it does not matter and certainly does not mean you have  to register as an  " eBay Business Account"... all that is required is that the details of such are disclosed to HMRC. 

Sellers tax information is nothing to do with eBay whatsoever... albeit they are " gathering" information or " restricting" accounts when eBay assume an account is running as a Business, but this can be to do with Consumer Law and eBay want their " business fees"... 

Business sellers can not misrepresent themselves as Private sellers  and must operate only from  a registered eBay Business Account. Genuine businesses already would do this. 

Private sellers selling their personal items do not have to - that is eBay policies. 

Another point to mention is that those selling personal items and perhaps who are on benefits, by eBay gathering sellers private information and passing it on to HMRC these could be flagged under  " undisclosed income " ... from my understanding this is not to do with tax implications either. 

Edit to add... I do not understand what the OP means by " past the market?" 

Perhaps @gymes_0  could explain a little clearer so we could understand exactly what they are meaning? 

[papso22]

I'm sorry I find your post a bit confusing.

If you are declaring and paying income tax on your ebay sales, but making those sales from a private account, either you are a business masquerading as a private seller (against a number of laws and ebay policies), or you are incorrectly paying tax on the sale of your private possesions.

Ebay are not interested in the tax position, apart from reporting, but there is a link between an activity that creates taxable income and that activity requiring an ebay business account.  

Trading requires an ebay business account to be legal, trading may result in a tax liability.   However, whether you have a tax liability or not from trading, you still need an ebay business account for that trading.

[vintique*violet]

The OP post is unclear... And  I do not see where they are saying that "they are declaring and paying income tax on ebay sales, and making those sales from a private account" ... 

They state they submit taxes but not what for - They have only said they don't have a business account on Etsy  ( do Etsy's policies state that sellers  have to have a registered business account with them?)

I am not confused with my previous response to you at all...you stated that all tax payers should have an eBay Business account and that is NOT correct. 

@papso22 

[gymes_0]

Sorry for any confusion I caused. I understand I should be a business on ebay. I just don't understand why they only ask me to do a business account and not any info on taxes. 

I read other messages on this group and saw about people getting asked for nin numbers. And. I am trying to understand it to. 

I started selling years ago. I did pay taxes. But didn't have a ebay business acct.  So I'm confused why they ask for the change but not the nin. You said sometimes this year. I'm confused because I read all sellers will be se

nt.

[game_raid]

The tax has not thing to do with eBay which has been pointed in in numerous posts above, if they haven't asked yet for your NINO they may or may not ask in the future.

Tax is dealt by the HMRC not eBay if you are buying, making items to sell for profit which sounds like you are as you have said you are already submitting taxes for your earnings from eBay you would still continue to do so holding a business account.

The best thing to do is get your eBay account sorted out and changed to a business because they will suspend it if you don't act within 30 days which could cause you to stop trading for X amount of time, carry on as you have been doing and if they request your NINO or UTR number just give them what they want.

[gymes_0]

I made a new account because I have anxiety and I read other posts and there's lots of messages about what people did wrong. Changes and unknown and stressful messages make it worse. 

So I don't understand why I am only asked to go to a business acct. What

does it mean? Why do you say they will ask for a nin number sometime this year?

I am also anxious about HMRC contacting me. I do send my taxes. But how I did my work on ebay may seem weird. It may be normal but I don't know what is normal or not. Because ebay used to only have a hundred listings I started different acct. And they were different types of things as well. So sold this kind here and a different one there. It began that way and I liked it for how I worked. I never thought it would ever be looked at! And I didn't get a chance before a couple days ago to know this would go to hmrc. Someone on another post said as long as you send your taxes your ok. I do but I still don't want to get HMRC calling me. That's scary and stressful for most people. So I don't know what will look weird to them. Will having different accts seem strange? It was done for good reasons and I liked working like that. But it wasnt  built for having someone sit on my shoulder as I worked. 

[game_raid]

I have been self employed for over 12 years and I have never spoken to the HMRC in regards to self assessment.

The HMRC don't care how many eBay accounts you have all they want is a return submitted on time and if any tax is owed it is paid on time.

eBay want you to change to a business account because of UK consumer law it is nothing to do with the HMRC so please try not to worry about them.

An eBay seller must register as a business if, for example, they sell items they have bought to resell, they make items in order to sell them, or if they buy items for their business.

https://www.ebay.co.uk/help/policies/selling-policies/selling-practices-policy/business-seller-polic...

[gymes_0]

Yes I know I have to go to a business acct. I just thought all sellers would be sent in january. So I didn't know if there were reasons they might not be sent this january. I only learned this month. 

I do send taxes but I do worry as well because I dont know what looks odd to hmrc. People keep saying if you do your taxes you are fine. I do and I still don't want to be checked. Is that really so strange? I wouldnt think anyone does. It would be very frightening and I have anxiety already. Explaining everything you do and why can be very stressful for people. I know that as someone reporting to HMrc for years that was always possible but I don't think I was likely to be interesting being pretty low income. But now this has changed and how I work which worked for me everyday may look weird to someone else. 

[game_raid]

There is no reason for you to be checked unless there is some major discrepancies on your return, not everyone knows the exact reason why the HMRC would audit someone's accounts.

If your account details are sent to the HMRC I would presume nothing will happen, they will see that you are registered as a sole trader and that you pay taxes.

[gymes_0]

That is a little less frightening. I just worry that how I work might look weird. I did it because ebay had limited listings and so I sold different things on different accounts and I liked working like that. But I don't know if other people do so do I look weird to hmrc. I don't want people to think I don't send taxes. I do. But I don't want to have lots of questions and stuff either. Even if I didn't have severe anxiety this would be unwelcome yo most people. But people with anxiety dont handle change and uncertainty very well. I wish they had told people sooner.

[game_raid]

All the HMRC need to know is your combined income from all your accounts that you have been using, you could have 50 accounts they really don't care.

Many sellers these days use multiple marketplaces on or offline, the HMRC don't care about this they care about the combined total of sales from all of these places.

eBay are really not interested if you have paid taxes of not, it isn't their problem. They have an issue with VAT because they can be liable for this if a seller has a invalid number but this won't apply to you.

[gymes_0]

Ok, I just wish we knew sooner. Its very stressful to try to figure out everything when I only learned this could happen this january two days ago. I know i worry more than most people but it has to be very stressful for a lot of people to.

[papso22 · Accepted solution]

Ebay are required to send details of sellers that have sold over 30 items or approx £1,700 worth between Jan and Dec 24, to HMRC, this month.

This report also needs to include the Natiional Insurance number of individuals as well as the sales data.  Ebay doesn't have this information so will need to collect it.

Originally it seemed this would be all sellers, but HMRC have allowed online platforms such as ebay to do it in stages as getting all the NI numbers is a huge task.

So eBay have started with new accounts opened in 2024, and asked for National insurance numbers from them first.  They will ask older accounts, such as yours, for their NI number this year and report on them next year.  I suspect that the reports for older accounts will cover two years as the Regulations behind these reports require the data from 1st January 2024.

HMRC will compare the reports they get with tax returns and may ask questions.  We don't know yet what actions they will take but they won't consider the ebay account status, which might not even be part of the report.

From what you have posted you don't need to worry about HMRC but you do need to upgrade to a business account on Ebay as they have told you to.